T he Economic After-math of the COVID-19 Virus on African American Communities O ccupational segregation, discrimination in the workplace, and exploitation exacerbate economic downturns in communities of color, such as the one caused by the COVID-19 pandemic, by disrupting jobs, hurting small companies, and increasing income shocks and unanticipated expenses. Many Black Americans are still reeling from the economic repercussions of the Coronavirus pandemic, which began more than a year ago. Nearly half of Black Americans believe the pandemic’s economic impact will make accomplishing their financial objectives more difficult in the long run. Furthermore, four out of ten Black adults live in a household that has lost a job or wages since the Coronavirus outbreak began. In the United States, decades of systemic racism in economic, educational, and housing policies have resulted in a significant racial wealth inequality. Prior to the pandemic, the average Black household had a net worth of between $17,100 and $20,765, compared to $171,000 for the average white family. In addition, black households have far less liquidity than white households. Households may be unable to absorb unexpected expenses and survive long term negative income shocks if they lack wealth and liquidity. As a result, many black families said they would be unable to “cover their current month’s bills’’ if faced with a $400 emergency expense. During economic downturns, many families of color struggle to keep their financial footing without assistance. People of color are also far more likely to be forced to face housing insecurity during the present economic slump, including eviction and foreclosure, due to a lack of liquid assets and uncertain work prospects. For homeowners, the CARES Act’s 60-day moratorium on foreclosures on all federally backed mortgages will not be adequate. Many Black homes are already in a bad financial state, and this pandemic will simply make matters worse. The pandemic has taken a devastating toll on the American economy. Millions of people in the United States have lost their jobs, and many businesses are battling to stay afloat. Thankfully, federal, state, and municipal governments have shown an enthusiasm to lessen the pandemic’s economic effects. However, officials should adopt the following policies to defend persons of color.
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